Maryland Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers
Maryland stacks a 0.5% state transfer tax, county transfer tax up to 1.5% and county recordation tax. See the sourced rates and a $300,000 example.
Maryland charges three layers: a 0.5% state transfer tax paid by the person conveying title, a county or Baltimore City transfer tax from 0.5% to 1.5% in most places, and a county recordation tax set per $500 of value. Who pays the local layers is set by your contract. Commission is negotiable.
What a Maryland seller owes at closing
Maryland is one of the most layered states for transfer costs. A single sale can carry a State transfer tax, a local transfer tax, and a county recordation tax. The address decides which numbers apply, and the spread between counties is wide enough to change your net by thousands of dollars.
The figures here come from the Maryland Department of Legislative Services, which summarizes current law in its 2026 session fiscal notes. Rates can change, so confirm the numbers for your county before you price a deal.
The three layers
| Layer | Rate | Notes from the sources |
|---|---|---|
| State transfer tax | 0.5% of consideration | 0.25% for a first-time Maryland homebuyer buying a principal residence, paid by the seller |
| Local transfer tax | 0.5% to 1.5% where imposed | 0.5% in Allegany, Caroline, Cecil, Charles, Kent, Queen Anne’s, Washington and Worcester; 1.5% in Baltimore City and Baltimore County |
| County recordation tax | $2.50 to $7.00 per $500 (fiscal 2026) | $2.50 in Baltimore and Howard; $7.00 in Charles and Frederick; most counties $3.00 to $5.00 |
A few special cases from the same sources. Anne Arundel County adds a 0.5% surcharge on specified transactions of $1.0 million or more, which makes the rate 1.5%. Montgomery County imposes various rates depending on the value of the property and surcharges on recordation for transactions above $500,000. Five counties, Calvert, Carroll, Frederick, Somerset and Wicomico, do not impose a local transfer tax. All counties are authorized to exempt a portion of the consideration on owner-occupied residential property, and counties may exempt first-time homebuyers.
The tax base for the State transfer tax is the consideration payable for the instrument, including any mortgage or deed of trust assumed by the grantee. The recordation tax base for a deed is the actual consideration paid.
Worked example on a hypothetical $300,000 sale
State transfer tax at 0.5%: $300,000 x 0.005 = $1,500. If the buyer is a first-time Maryland homebuyer buying a principal residence, the rate is 0.25%: $300,000 x 0.0025 = $750, paid by the seller.
Local transfer tax, depending on the county:
- At 0.5%: $1,500
- At 1.5%: $4,500
- In a county with none: $0
Recordation tax, depending on the county, at $X per $500 (600 units on $300,000):
- At $2.50: 600 x $2.50 = $1,500
- At $3.00 to $5.00: $1,800 to $3,000
- At $7.00: 600 x $7.00 = $4,200
Put together, a hypothetical county with a 0.5% local transfer tax and a $3.00 recordation rate would carry $1,500 + $1,500 + $1,800 = $4,800 in combined taxes on this sale. A county with a 1.5% local transfer tax adds $3,000 to that on the same price. Who bears each layer is covered below. Use your county’s rates, not an average.
Who pays
The fiscal note says any person or business conveying title is required to pay the State transfer tax, and that the first-time buyer rate is paid by the seller. We did not find a sourced custom for who pays the local transfer tax or the recordation tax. Those are set by your purchase contract, so ask your title company or closing attorney what is customary locally. Read the closing cost clause in your contract first.
Other seller costs
Commission is negotiable. Mortgage payoff, prorated property taxes, title and escrow fees and recording fees also apply in most sales. This guide does not quote amounts for those because they vary by lender, county and title company. Ask for a seller’s net sheet early.
Why investors care
Flips. The taxes land on both ends. On the buy side you may owe a share depending on the contract. On the sell side, you are the person conveying title, so the State transfer tax is yours, and the local layers depend on the contract. On a $300,000 exit the State layer alone is $1,500, and a county with a 1.5% local transfer tax could add up to $4,500 more if the contract puts that on you. Those figures belong in your resale budget before you buy.
Wholesale assignment vs. double close. In an assignment, the original seller deeds directly to your end buyer, so one set of taxes applies on one instrument. A double close means two closings and two sets of costs: two instruments, two State transfer tax calculations, and two sets of local and recordation charges, each based on its own consideration. The extra set matters most in counties with high local rates. Ask your title company to price both structures for your county.
Max allowable offer. Work backward from your exit price: subtract the State transfer tax, the local transfer tax if your contract puts it on you, and your share of recordation tax, plus your other costs, before you set the number. Do it with your county’s rates, since the difference between 0.5% and 1.5% local transfer tax is $3,000 on a $300,000 price.
Run your numbers
Use our closing cost calculator to add the transfer and recordation taxes to your deal math and the deal analyzer to see the effect on your margin. Automize CRM keeps your deal numbers and follow-ups in one place.
This is general information, not legal or tax advice. Confirm your exact figures with your title company or closing attorney.
Sources
- Maryland General Assembly, Department of Legislative Services: HB 82 (2026) Fiscal and Policy Note, recordation and transfer taxes
- Maryland General Assembly, Department of Legislative Services: SB 725 (2026) Fiscal and Policy Note, State transfer tax
Rates checked October 24, 2026. General information, not tax or legal advice.
Common questions
How much is the Maryland state transfer tax?
The Maryland Department of Legislative Services reports the State transfer tax rate is 0.5% of the consideration payable for an instrument of writing. For a first-time Maryland homebuyer purchasing a principal residence, the rate is 0.25%, and that is paid by the seller. On a hypothetical $300,000 sale, 0.5% is $1,500.
Who pays the Maryland state transfer tax?
A fiscal note from the Department of Legislative Services says any person or business conveying title to real property is required to pay the State transfer tax. That points to the seller. Local transfer and recordation taxes depend on the county and your contract, so ask your title company what is customary locally.
What are the Maryland county transfer tax rates?
The State and Baltimore City plus 18 counties impose a transfer tax. Local rates run from 0.5% in eight counties up to 1.5% in Baltimore City and Baltimore County. Calvert, Carroll, Frederick, Somerset and Wicomico do not impose one. Anne Arundel and Montgomery have special rules, so check your county.
What is the Maryland recordation tax?
Counties and Baltimore City set their own recordation tax, expressed per $500 of consideration. For fiscal 2026 the rates ranged from $2.50 per $500 in Baltimore and Howard counties to $7.00 per $500 in Charles and Frederick counties, and most counties are between $3.00 and $5.00.
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